A new Diggity Marketing study reveals that click-through rates (CTR) are declining across the board due to AI-powered search experiences, while Google’s Head of Search Liz Reid confirms Google’s long-term AI shift, evolving ad strategy, and push to remain competitive as AI reshapes search behavior.
1. Problem Identification: AI Search Is Reshaping SEO—And CTR Is Dropping
Search is undergoing the biggest transformation since the introduction of universal search snippets. With Google’s introduction of AI Overviews (formerly SGE), “AI Mode,” and new generative search interfaces, user interaction patterns are dramatically changing.
The latest Diggity Marketing research—built on 10 case studies across a range of industries—shows a consistent pattern: overall click-through rates are declining, with traditional organic listings losing visibility, scroll depth, and traffic.
This shift is driven by three forces:
- AI answers appearing above rankings
- Reduced need to click through to websites
- A growing trend toward “zero-click” satisfaction
At the same time, Google’s new Head of Search, Liz Reid, has publicly discussed Google’s AI direction, the company’s revenue realities, and how Google went from being one of the earliest LLM adopters to a company now “catching up” competitively.
Together, these signals point to a new landscape: AI is no longer an SEO trend—it is the SEO environment.
2. Why Click-Through Rates Are Declining: The Core Drivers
Diggity’s analysis points to several structural changes affecting organic CTR across almost every vertical.
2.1 AI Overviews (AI Mode) Sit Above Everything Else
In AI Mode, Google provides comprehensive, synthesized answers—often including citations from only 2–4 sources. Users get:
- Definitions
- Summaries
- Recommendations
- Step-by-step instructions
- Comparisons
- Product suggestions
Before they ever see the first organic result.
If AI satisfies intent early, fewer users scroll.
2.2 Zero-Click Search Rising Fast
Across Diggity’s case studies, average scroll depth decreased, meaning users are spending less time exploring traditional search results.
“Zero-click behavior” increases when:
- The answer appears in the AI box.
- Users feel confident the AI result is accurate enough.
- SERP real estate becomes cluttered with AI, ads, and modules.
Traditional SEO loses visibility not because rankings decline, but because visibility above the fold declines.
2.3 SERP Layout Is Compressing Organic Listings
Google’s evolving layout increasingly resembles:
- AI answer
- Ads
- Featured snippets
- People-also-ask
- Video modules
- Local packs
- Shopping
- Organic results “below the fold”
More modules = fewer clicks.
More AI = fewer scrolls.
Fewer scrolls = reduced CTR.
2.4 User Trust in AI Answers Is Increasing
Users increasingly view AI responses as authoritative—even when they’re only skimming. Diggity’s test results suggest that when AI Overviews appear, users often trust them without validating via organic results.
This is what’s reshaping SEO at its core.
3. What Liz Reid’s Comments Reveal About Google’s Direction
In interviews and public statements, Google’s new Head of Search, Liz Reid, has offered rare clarity about Google’s internal strategy.
Here are the most important themes.
3.1 Google Always Intended Search to Become More AI-Driven
Reid has emphasized that Google has been using AI in search for more than a decade (RankBrain, BERT, MUM) and is continuing that evolution.
Google is not “bolting on” AI—it’s rebuilding search around it.
3.2 Google Was Early With AI, But Needed to “Catch Up”
Reid acknowledged that while Google was one of the earliest AI/LLM pioneers, the company was outpaced publicly by new competitors (OpenAI, Anthropic).
Google is now accelerating—fast.
This explains:
- Frequent releases
- Product rebrands
- Rapid AI feature expansions
- Faster rollout of experimental interfaces like AI Overviews
3.3 Ad Revenue Still Influences Interface Decisions
Reid admits Google must balance:
- User satisfaction
- Publisher ecosystem health
- Advertising revenue
Because ads make up roughly 80% of Google’s business, expect:
- AI integrated with ads
- AI experiences that still leave room for paid placements
- Experiments where ads appear inside or near AI Overviews
3.4 Google Is Positioning Itself Against Chatbots and LLM Interfaces
Reid frames AI-enhanced search not as “traditional search + AI,” but as a new alternative to LLM chat tools.
Google wants to be the default place where people:
- ask questions
- research
- compare
- plan
- shop
- generate ideas
And CTR decline is part of this transition.
4. Analysis of the 10 Case Studies: What the Data Shows
Diggity Marketing’s testing spanned industries including:
- Health
- Finance
- Technology
- Reviews/affiliates
- Local
- SaaS
- Education
- Travel
Across all categories, patterns emerged.
Finding #1: CTR Drops When AI Mode Is Triggered
Organic CTR decreases in:
- Featured snippet positions
- Top 3 rankings
- Top 10 rankings
Even positions 1–3 experience sharp declines when AI Overviews appear.
Finding #2: Informational Queries Are Most Impacted
Queries involving:
- “How to…”
- “Best…”
- “Compare…”
- “Explain…”
- “Why does…”
- “Symptoms…”
- “Ideas…”
AI tends to answer fully, reducing clicks.
Finding #3: Commercial Intent Queries Still Drive Clicks—but Fewer
Some categories, like:
- product reviews
- affiliate content
- B2B SaaS
- high-intent shopping
still see clicks—but less than before.
Finding #4: Local Searches See Mixed Impact
Local packs sometimes appear below AI Overviews, but because local intent often requires action (directions, hours, call), CTR declines less dramatically.
Finding #5: Branded Queries Are Least Affected
Branded search remains resilient:
- Users still click the brand they typed
- AI rarely replaces branded intent
- SERP modules are less cluttered for branded terms
This is why brand building becomes even more critical.
5. Solution Framework: How SEO Teams Should Adapt
Here is a four-phase roadmap to adapt to declining CTR and AI-driven SERPs.
Phase 1: Understand AI-Influenced SERPs
Before taking action, analyze:
- When AI Overviews appear
- How AI summarizes your content
- What sources it cites
- Where organic results are positioned
- What SERP modules appear above your links
- Your scroll-depth heatmaps (in GA/Hotjar)
- CTR changes over time
This reveals where visibility is being lost.
Phase 2: Optimize for AI Inclusion (Not Just Ranking)
AI Overviews often cite:
- Structured content
- Well-organized answers
- Authoritative sites
- Semantically clear pages
- Pages with strong E-E-A-T
To optimize for inclusion:
- Add clear Q&A sections
- Write concise, structured answers
- Improve semantic markup
- Strengthen internal linking
- Use clean headings (H1 > H2 > H3)
- Add expert quotes, credentials, authorship
- Ensure factual accuracy and consistent terminology
Your goal is not just ranking—it’s being chosen by AI.
Phase 3: Build AI-Resilient Traffic Channels
As organic CTR drops, diversification becomes non-negotiable.
1. Build brand search demand
Branded searches bypass AI Overviews and preserve CTR.
Increase brand demand through:
- content marketing
- social presence
- creator partnerships
- thought leadership
- PR
- email lists
- YouTube channels
2. Invest in zero-click optimized content
If users don’t click, make sure they still:
- learn from your snippet
- see your brand
- trust your expertise
Optimize for featured snippets, People Also Ask, and entity-level authority.
3. Strengthen non-Google traffic
Shift part of your content strategy to:
- YouTube
- TikTok
- Newsletters
- Communities
- Direct traffic
4. Expand into AI Search Platforms
Optimize for:
- ChatGPT Search
- Perplexity
- TikTok AI
- Brave Search
- Bing Copilot
- Gemini AI
Future SEO = multi-AI ecosystems, not just Google.
Phase 4: Future-Proof SEO Fundamentals
Despite AI disruption, core SEO levers still matter—just more than ever:
- Deep topical authority
- Long-form, expert-led content
- Strong site architecture
- Fast performance
- Mobile excellence
- Structured data
- EEAT signals
- Content originality
AI may change how results are displayed, but high-quality content remains foundational.
6. Authority Elements: Key Insights from Experts
Liz Reid’s commentary highlights:
- Google is committed to AI transformation
- Ads will remain central to search economics
- Search will increasingly function like a conversational AI assistant
- Search results will become more synthesized and less link-heavy
Meanwhile, Diggity’s study provides empirical evidence that SEO performance metrics—especially CTR—are undergoing structural decline.
For SEO teams, this isn’t a temporary dip.
It’s a new paradigm.
7. Practical Implementation: Checklists, Tools & Metrics
Fast Start Checklist
- Run AI-SERP audits for your top 100 pages
- Determine which keywords trigger AI Overviews
- Measure CTR drops by position
- Optimize top pages for AI inclusion (structured answers, semantic markup)
- Add author bios, credentials, and experience evidence
- Build brand-focused content campaigns
- Diversify traffic to non-Google platforms
- Strengthen all high-intent landing pages
- Implement scroll-depth analytics
- Test new conversion paths to counter reduced top-funnel traffic
Tools to Use
AI SERP Tracking Tools
- Thruuu
- SERP API
- SEOTesting
- AccuRanker AIO Tracking (if available)
CTR and SERP Analytics
- Google Search Console
- SplitSignal / SEOTesting
- Hotjar or Clarity scroll maps
On-Page AI Optimization
- Surfer
- NeuronWriter
- Clearscope
- Schema.org + JSON-LD generators
Brand Demand Generation
- YouTube SEO tools
- TikTok analytics
- Newsletter platforms
- PR distribution tools
12-Month Roadmap
Months 0-2:
- Audit AI SERPs
- Identify declining pages
- Optimize content structure
- Add expert signals
Months 3-4:
- Launch brand content campaigns
- Improve entity-level SEO
- Add structured data at scale
Months 4-6:
- Expand omnichannel presence
- Build E-E-A-T into all core pages
- Update old content for AI extraction
Months 6-9:
- Diversify traffic sources
- Launch YouTube + short-form video content
Months 9-12:
- Reassess AI-driven CTR trends
- Optimize high-impact pages
- Scale cross-platform SEO strategy
Success Metrics
SEO Visibility Metrics
- AI citation rate
- Featured snippet wins
- Entity recognition in AI platforms
- Topical authority coverage
- Keyword universe growth
CTR Metrics
- CTR changes by keyword category
- Scroll-depth improvements
- Above-the-fold visibility metrics
Brand Metrics
- Branded search volume
- Direct traffic
- Social mention volume
- YouTube channel growth
Revenue Metrics
- Conversion rate stability
- Low-funnel traffic resilience
- ROI from diversified channels
8. Common Pitfalls & How to Avoid Them
Pitfall 1: Treating AI SERPs like traditional SERPs
Fix: Optimize for AI inclusion, not just rankings.
Pitfall 2: Ignoring brand-building
Fix: Treat brand demand as the new SEO moat.
Pitfall 3: Over-relying on organic as traffic drops
Fix: Diversify early, not reactively.
Pitfall 4: Optimizing content only for keywords
Fix: Optimize for entities, questions, and semantic meaning.
Pitfall 5: Thinking you can “wait it out”
Fix: AI search won’t reverse—adaptation is the only path forward.
9. Conclusion: SEO Is Entering Its AI Era
The Diggity Marketing study proves what many SEOs have felt intuitively: CTR is falling because AI is absorbing more user attention—and more user trust.
Liz Reid’s comments confirm Google is transforming search into an AI-first experience, not a list of links.
SEO is evolving from ranking management to visibility orchestration across AI ecosystems.
The future of SEO belongs to teams that:
- Optimize for AI inclusion
- Build strong brand presence
- Diversify traffic channels
- Strengthen topical authority
- Create structured, expert, trustworthy content
- Adapt to new SERP behaviors
Search is no longer about dominating page 1.
It’s about being recognized as the best answer—by AI.
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